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It´s not just Konami.So many Japanese 3rd parties just 'lost it' during the 6th gen-7th gen transition.

Perhaps, it´d be a nice idea for a thread, to discuss the main reasons why that happened specifically during the transition from the PS2/GC/Xbox/GBA to the PS3/Wii/360/DS/PSP

Two of these reasons, I guess: Japanese gamers´ (sudden?) disinterest in home consoles and the start of HD development apparently crippling a lot of companies.